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OSIS vs. TEL: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Electronics - Miscellaneous Components stocks have likely encountered both OSI Systems (OSIS - Free Report) and TE Connectivity (TEL - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
OSI Systems has a Zacks Rank of #2 (Buy), while TE Connectivity has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that OSIS is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
OSIS currently has a forward P/E ratio of 16.29, while TEL has a forward P/E of 19.98. We also note that OSIS has a PEG ratio of 1.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TEL currently has a PEG ratio of 2.05.
Another notable valuation metric for OSIS is its P/B ratio of 2.87. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, TEL has a P/B of 3.64.
These metrics, and several others, help OSIS earn a Value grade of B, while TEL has been given a Value grade of C.
OSIS has seen stronger estimate revision activity and sports more attractive valuation metrics than TEL, so it seems like value investors will conclude that OSIS is the superior option right now.
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OSIS vs. TEL: Which Stock Should Value Investors Buy Now?
Investors with an interest in Electronics - Miscellaneous Components stocks have likely encountered both OSI Systems (OSIS - Free Report) and TE Connectivity (TEL - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
OSI Systems has a Zacks Rank of #2 (Buy), while TE Connectivity has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that OSIS is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
OSIS currently has a forward P/E ratio of 16.29, while TEL has a forward P/E of 19.98. We also note that OSIS has a PEG ratio of 1.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TEL currently has a PEG ratio of 2.05.
Another notable valuation metric for OSIS is its P/B ratio of 2.87. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, TEL has a P/B of 3.64.
These metrics, and several others, help OSIS earn a Value grade of B, while TEL has been given a Value grade of C.
OSIS has seen stronger estimate revision activity and sports more attractive valuation metrics than TEL, so it seems like value investors will conclude that OSIS is the superior option right now.